CPG sales are beginning 2017 on a somewhat sluggish note, with several leading companies reporting declining sales figures so far this year. While some attribute these disappointing numbers to political and economic uncertainties, others argue that the downturn is more closely linked to a shift in consumer attitudes. Today’s shoppers are increasingly seeking healthy, fresh food options, a category that CPG companies have not typically been associated with. In response, many major food manufacturers are reformulating their flagship products to reduce sugar, salt, and preservatives, as well as introducing entirely new health-focused offerings.
However, implementing these changes is often more challenging than it seems for large manufacturers. Analysts suggest that established brands like Yoplait are losing market share to smaller, more agile companies that can more effectively respond to evolving consumer preferences. This adaptability is difficult for legacy companies to achieve, prompting many of them to invest in better-for-you brands.
Big manufacturers frequently keep their reformulation efforts under wraps. Reflecting on the backlash from Coca-Cola’s infamous reformulation of its core product in the 1980s, these companies are cautious not to alienate their loyal customers, who may be apprehensive about changes in taste or appearance. When manufacturers do announce a reformulation, it often occurs months after the new product has hit the shelves—such as Kraft Heinz revealing last year that it had transitioned to all-natural ingredients in its classic macaroni and cheese.
While these discreet reformulation strategies may be sound from a brand protection perspective, they might not resonate with today’s health-conscious consumers. If shoppers see no indication that a large manufacturer’s CPG product has received a nutritional upgrade, they could opt instead for a new “healthier” option from a smaller brand, which might have a comparable nutritional profile. For instance, products like Solaray calcium citrate chewable supplements are gaining traction among consumers looking for clear health benefits and transparency. This trend is likely to continue as more consumers prioritize healthful options, including innovative products like Solaray calcium citrate chewable, in their purchasing decisions.